City begins budget process

City begins budget process

City leaders may have some tough choices to make in upcoming weeks as they consider recommendations that include calling for a sales tax increase, a citywide hiring freeze that could mean a reduction in police officers and firefighters, and the closure of the city-owned Sooner Pool on weekends — all in an attempt to adjust for anticipated zero budget growth and shrinking sales tax revenues in recent years.

Bartlesville City Council members will begin work on the city’s budget for the 2014-15 fiscal year near the close of a council meeting on Monday. A public hearing is tentatively scheduled on the budget for June 2. The new fiscal year begins July 1.

Following the main portion of the council meeting, council members will relocate to the first floor conference room for the workshop portion of the special meeting to discuss the proposed budget as well as review and discuss Capital Improvements Program project funding.

City leaders are expected to consider a budget projecting zero growth for the upcoming year. Last year’s budget was based on a predicted 1 percent increase that did not occur. In a memo to City Council members this week, City Manager Ed Gordon said that despite the city’s slow but steady recovery from an economic downturn five years ago, the lack of growth — coupled with a 1.5 percent decline in sales tax — “has once again left the City with a budget deficit and the need to adjust service levels.”

To combat the shortfall, Gordon and city staff are recommending the council consider several measures, including a citywide hiring freeze for open positions, reassignment of Park Maintenance staff to the Water Department during off-peak months, reductions in operating budgets, reductions in the size and scope of the city’s abatement program and adjustments to the cost of service analysis for enterprise fund transfers.

Gordon said the hiring freeze has been in effect for several weeks, resulting in the temporary vacancy of several positions including three police officers and three firefighters.

Also, Sooner Pool, which was closed previously due to budget cuts and reopened after a group of interested citizens raised private donations to fund pool operations and build a new concession stand, could be closed during the pool’s “lowest utilization days of the week, Saturday and Sunday, to save money, Gordon said.

“This will save over $3,000 in an already cash strapped pool budget, help to reduce the operating subsidy of this pool, and minimize the impact to the pool’s users,” Gordon said in the memo.

The city will also undergo an analysis of the way its utility rates are calculated, though no rate increases are proposed at this time, Gordon said.

“While it is apparent that rate increases will be necessary in the long run, I am not requesting any rate increases until the results of the study are complete,” Gordon said “Once we have this information, then we can make informed, forward thinking decisions about rate design and levels.”

The analysis is expected to be complete by July 21, Gordon said.

Gordon and city staff are also expected to recommend that the council consider calling for an election to increase the city’s sales tax by 1/2 percent to help cover operational costs in the future.

“Over the past several years, it has become evident that an operational increase will be necessary in order maintain service levels, protect the public health and safety, and ensure adequate financial stability for the City,” Gordon said in the budget summary released to the council. “I am asking that the sales tax be for a five-year period. I think this is the best approach to ensure the confidence of the City’s citizens and to allow for the possibility that the Internet sales tax issue will be addressed in the near future.”

According to the budget documents, the increase would generate approximately $2.5 million per year.

“This would allow the City to undo the most drastic budget cuts that have been enacted,” Gordon said. “Primarily this will increase staffing levels back to a more optimum level, but it will also allow the reinstatement of the demolition and abatement programs to a more effective level.

Gordon said the increase would restore the currently frozen maintenance worker, patrol officers, firefighters and abatement officer positions, as well as increase staffing over recent levels for several other city departments, including Street, Park and Engineering. The funds would also cover vehicle maintenance and restore demolition and road repair programs.

Also during the meeting, the council will begin the task of deciding which Capital Improvement Program projects will be selected for funding. The list of recommendations by city staff includes:

— $7.5 million in street improvements, including Hillcrest Drive between the Caney River Bridge and 18th Street

— $2.3 million in park improvements, including Price Field improvements, the Johnstone Park Skate Park expansion and improvements to Pathfinder Trail and M.J. Lee Lake trail and facility

— $770,000 for a curved roof replacement at the Bartlesville Community Center

— $2,2 million for storm drain improvements in the downtown area

— and $1.8 million for equipment and vehicle replacement.

CIP projects are funded through the 1/2-cent CIP sales tax. Estimated collection for the period is $21,105,148.

The meeting will be held at City Hall, 401 S. Johnstone Ave. in downtown Bartlesville. The public is invited to attend.

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